Aspen Group Limited · ASX:APZ
Aspen — 1H FY21 Earnings Presentation
42 slides from Aspen's earnings presentation, Feb 25, 2021
Slide 1: Financial Results – First Half FY21
Aspen Group For personal use only Financial Results – First Half FY21 February 2021 Newcastle, NSW
Slide 2: Contents
Residents at Four Lanterns Estate, NSW Contents For personal use only 1 Financial Results – 1H FY21 2 Operations & Development 3 Portfolio 4 Managed Funds 5 ESG 6 Statutory Accounts Extract 7 Appendices Sweet Water Grove – marketing campaign, NSW
Slide 3: Financial Results 1H FY21
Barlings Beach Holiday Park, NSW For personal use only Koala Shores, Port Stephens, NSW - recently refurbished cabin 1 Financial Results 1H FY21 3
Slide 4: Aspen Group Overview
Aspen Group Overview 1.1 ▪ Aspen is a leading provider of quality accommodation on Current Lease Offering competitive terms in the residential, retirement and short stay For personal use only (by number of dwellings and land sites) sectors ▪ Our customers range from single to large family households
Slide 5: Aspen's Competitive Prices and Rents
Aspen’s Competitive Prices and Rents 1.2 For personal use only As at 31 December 2020 Portfolio Value $186m Number of Dwellings/Sites 2,361 Average Value per Dwelling/Site $79k WACR 8.3% Land Lease Houses Apartments Mixed Use Parks Co-Living Communities Average Book Value per Dwelling/Site $254k $28
Slide 6: Results Summary - 1H FY21
Results Summary - 1H FY21 1.3 Aspen’s affordable accommodation strategy is continuing to deliver strong growth in earnings and distributions… For personal use only STRATEGY FINANCIAL (change from pcp) ▪ Key strategic priority is positioning for ▪ Operating EPS 4.55 cents – up 20% leadership and scal
Slide 7: Financial Performance – 1H FY21
Financial Performance – 1H FY21 1.4 1H FY21 1H FY20 ▪ Rental and ancillary services revenue – Key Metrics Change FY20 $m $m For personal use only decline of 2% mainly attributable to the COVID-19 event, in particular border Statutory Profit 9.54 3.18 200% 11.87 restrictions impacting tourism trade a
Slide 8: Reconciliation of Statutory Profit to Operating Profit
Reconciliation of Statutory Profit to Operating Profit 1.5 For personal use only 1H FY21 1H FY20 Asset revaluations $m $m ▪ Aspen Karratha Village (AKV) was externally revalued during the period and all other properties were subject to Director Statutory Net Profit after Tax 9.54 3.18 reviews ▪ A re
Slide 9: Balance Sheet and Capital Management
Balance Sheet and Capital Management 1.6 For personal use only Dec 2020 Dec 2019 Jun 2020 Key Metrics $m $m Change $m Property Assets 185.7 159.7 16% 167.0 ▪ Property Assets increased 16% over the year - driven mainly by the acquisition of Cooks Hill co- living community, Mount Barker land, and the
Slide 10: FY21 Outlook
FY21 Outlook 1.7 Aspen is well positioned to continue to grow profits and the For personal use only book value of equity over the medium term and we are aiming for growth of at least 10% per annum. However, business conditions and profitability may remain volatile over the short term: ▪ Rents are ex
Slide 11: FY21 Outlook
FY21 Outlook 1.8 For personal use only Demand for Aspen’s accommodation is increasing ▪ Population is growing in our markets ▪ Our properties are typically in “lifestyle” locations close to jobs ▪ New technology and shifts in consumer preferences are enhancing, not disrupting, demand: - Our new dwel
Slide 12: Capital Recycling to Grow NAV and EPS
Capital Recycling to Grow NAV and EPS 1.9 From low yielding properties into other areas of the portfolio where we can offer lower rents to our customer base while making higher investment returns... For personal use only New Development Fully Developed Residential ▪ Net income yield on cost >10% ▪ N
Slide 13: Operations and Development & Trading
For personal use only Treatts Rd – Lindfield Apartments Sweetwater Grove Estate, Tomago, NSW 2 Operations and Development & Trading 13
Slide 14: Property NOI – 1H FY21 vs. 1H FY20
Property NOI – 1H FY21 vs. 1H FY20 2.1 Residential Land Lease Mixed-Use Short Stay Workforce For personal use only Perth Four Darwin AKV Barlings Residential Lanterns FSR Beach +6% New +14% 42% +7% Lindfield Highway Koala Mandurah Apartments One Shores Gardens1 New (8%) 48% +7% Cooks Hill Adelaide C
Slide 15: Operational Performance and Opportunities
Operational Performance and Opportunities 2.2 Residential For personal use only Perth Portfolio Lindfield Apartments Cooks Hill Co-Living Burleigh Heads ▪ Settled in November 2019 ▪ Settled in August 2019 ▪ Settled in July 2020 for average ▪ Settled in December 2020 for price of $68k1 per room avera
Slide 16: Operational Performance and Opportunities
Operational Performance and Opportunities 2.3 Land Lease Mixed-Use For personal use only Four Lanterns Mandurah Gardens Sweetwater Grove Barlings Beach Highway One ▪ NOI up 14% on 1H FY20 ▪ NOI up 7% on 1H FY20 ▪ NOI down 4% on 1H FY20 ▪ NOI up 7% on 1H FY20 due ▪ NOI down 8% on 1H FY20 with increas
Slide 17: Operational Performance and Opportunities
Operational Performance and Opportunities 2.4 Short Stay Workforce For personal use only Adelaide CP Koala Shores Tween Waters Darwin Freespirit AKV ▪ NOI down 56% on 1H FY20 ▪ NOI up 48% on 1H FY20 ▪ NOI down 7% on 1H FY20 ▪ NOI up 42% on 1H FY20 ▪ NOI up 6% on 1H FY20 largely due to the impacts du
Slide 18: Development & Trading Activity
Development & Trading Activity 2.5 Solid momentum in development and trading activity Development & Trading Activity For personal use only has continued in FY21: Sales ($m) 1H FY21 performance exceeded the full FY20 result No. of Sales ▪ Development and sales of houses under a land $25 120 lease mod
Slide 19: Development & Trading Activity
Development & Trading Activity 2.6 Strong growth continues in the profitable development and trading of house and land inventory… For personal use only House and Land Sales Summary House & Lot Inventory – 31 Dec 2020 No. of Sales4 Average Sales Price Developed Future Pipeline Built Houses Land Lots
Slide 20: Key Development Projects & Pipeline
Key Development Projects & Pipeline 2.7 Attractive investment opportunities exist within the current portfolio to increase profits and value… For personal use only Time Frame Project Key Projects Dwellings / FY21 FY22 FY23 FY24 and Beyond Sites1 Development – new income producing sites / enhance qua
Slide 21: Portfolio
For personal use only Newcastle, NSW 3 Portfolio Highway 1 Caravan and Tourist Park, Bolivar South, SA – newly installed Xodboxes Newcastle, NSW 21
Slide 22: Portfolio Summary
Portfolio Summary 3.1 Portfolio Aggregates1 ▪ Aspen currently has 16 properties valued at approximately $186m: For personal use only o Average value of approximately $79k per approved dwelling/site Properties* 16 o Only $2.5m per hectare / $250 per sqm of land Land Area 74 hectares o WACR of 8.3% Ap
Slide 23: Aspen's portfolio is geographically diversified
Aspen’s portfolio is geographically diversified… 3.2 Land Area Dwellings/ Land Area Dwellings/ WA NT (Hectares) Sites Property Type by Location (Hectares) Sites (value weighted) For personal use only 12 Mandurah 6.8 158 15 Darwin FreeSpirit 10.8 461 13 AKV 2.9 180 Total 14 Perth Residential 3.4 84 1
Slide 24: Perth Portfolio: Acquisition timing and rationale supported
Perth Portfolio: Acquisition timing and rationale supported 3.3 WA’s mining industry is growing strongly… Fueling economic activity and population growth… For personal use only Most of this activity is in the Pilbara (Karratha) region Leading to higher demand for housing, lower vacancy rates, …and i
Slide 25: Aspen Karratha Village (AKV)
Aspen Karratha Village (AKV) 3.4 We expect economic activity to increase in Karratha, underpinned by major projects… For personal use only ▪ We are transitioning to a short stay operating New land and jobs in regional WA but still a housing crisis model at AKV after the expiry of Woodside’s long-ter
Slide 26: 1H FY21 Acquisitions – Attractively Priced
1H FY21 Acquisitions – Attractively Priced 3.5 Mount Barker, SA Build to Rent Townhouses 1 2 3 Cooks Hills, NSW Co-living Development Land Burleigh Heads, Qld For personal use only Status: Settled December 2020 Settled December 2020 Settled July 2020 Purchase Price: $4.51m $3.15m $3.75m Dwellings/Si
Slide 27: Aspen's Portfolio Composition & Growth
Aspen’s Portfolio Composition & Growth 3.6 ▪ Aspen’s portfolio composition and income streams have Property Type2 Property Type2 For personal use only improved materially over the past few years. (value weighted) (NOI weighted) o Increased weighting to: - Metropolitan locations - More stable, less s
Slide 28: Aspen Group: Portfolio Summary
Aspen Group: Portfolio Summary 3.7 New South Wales Queensland For personal use only Cooks Hill Four Lindfield Sweetwater Koala Barlings Tween NSW Burleigh Lindfield Kiah Co-Living Lanterns Kalinda Grove Shores Beach Waters TOTAL Heads Community Sydney Sydney Sydney Greater Greater Greater South Sout
Slide 29: Aspen Group: Portfolio Summary
Aspen Group: Portfolio Summary 3.8 WA South Australia NT GROUP For personal use only Mandurah Perth Adelaide Highway Darwin AKV WA TOTAL Mount Barker SA TOTAL TOTAL Gardens Residential CP One FSR South Region Coast Pilbara Perth Metro Adelaide Metro Adelaide Metro Adelaide Metro Darwin Metro Land Ow
Slide 30: Managed Funds
For personal use only 4 Managed Funds Coorong Quays Marina and Tavern, SA 30
Slide 31: Funds Managed by Aspen – 1H FY21
Funds Managed by Aspen – 1H FY21 4.1 Coorong Quays For personal use only ▪ Operating profit 5% above forecast ▪ Marina berth occupancy up 11% ▪ Excellent land sales with 61 contracts in 1H FY21 compared to 23 for all of FY20 ▪ Completed civil works on 32 residential land lots in 1H FY21 and commence
Slide 32: Ethical, Social, and Corporate Governance
For personal use only Burleigh Heads, QLD 5 Ethical, Social, and Corporate Governance 32
Slide 33: Environmental, Social and Corporate Governance Program
Environmental, Social and Corporate Governance Program 5.1 Social For personal use only • Aspen improves society and reduces inequality by providing quality accommodation on affordable terms to a wide variety of Australian households in the residential, retirement and short stay sectors. Many of our
Slide 34: Environmental, Social and Corporate Governance Program
Environmental, Social and Corporate Governance Program 5.2 Governance For personal use only • Aspen Group comprises the stapled head entities Aspen Group Limited and Aspen Property Trust. Aspen Group Limited is a company with a Board of Directors and Aspen Property Trust is a trust governed by a Res
Slide 35: Statutory Accounts Extracts
Darwin Freespirits Resort, NSW For personal use only Four Lanterns Aspen KarrathaEstate, Leppington Village, WA NSW 6 Aspen Group Statutory Accounts Extracts 16 Treatts Barlings Perth, Rd, Lindfield WABeach HolidayApartments, Park, NSW NSW Seabreeze Villa cabins – Barlings Beach, NSW 35
Slide 36: Statutory Accounts Extract: Statement of Profit and Loss
Statutory Accounts Extract: Statement of Profit and Loss 6.1 For personal use only ^ PLACEHOLDER ^ Notes can be viewed in the financial statements 36
Slide 37: Statutory Accounts Extract: Balance Sheet
Statutory Accounts Extract: Balance Sheet 6.2 ^ For personal use only ^Notes can be viewed in the financial statements 37
Slide 38: Statutory Accounts Extract: Cash Flow Statement
Statutory Accounts Extract: Cash Flow Statement 6.3 For personal use only PLACEHOLDER 38
Slide 39: Statutory Accounts Extract: Segment Information
Statutory Accounts Extract: Segment Information 6.4 For personal use only PLACEHOLDER 39
Slide 40: Appendices
For personal use only Burleigh Heads, QLD 7 Appendices 40
Slide 41: Distribution & Tax History
Distribution & Tax History 7.1 Aspen Group Ltd Aspen Property Trust1 For personal use only Period / Quarter Total Amount Paid Date Paid Distribution Type Tax Deferred / Ended cents CPS CPS Non assessable income Dec-17 28/02/2017 Ordinary - 2.10 - 2.10 Jun-17 29/08/2017 Ordinary - 2.50 - 2.50 Oct-17
Slide 42: Disclaimer
Disclaimer This presentation has been prepared by Aspen Group Limited on behalf of Aspen Group Limited and Aspen Property Trust (“Aspen”) and should not be considered in any way to be an offer, invitation, solicitation or recommendation with respect to the subscription for, purchase or sale of any s